A Positive Externality Exists and Government Wants to Apply a Per-Unit

question 55

Multiple Choice

A positive externality exists and government wants to apply a per-unit subsidy in order to bring about the socially optimal output. Under what condition will the solution (of the subsidy) be worse than the problem (the market failure) ?

• A)Under the condition that the subsidy is greater than the marginal external benefit (associated with the positive externality).
• B)Under the condition that the post-subsidy output is not farther away from the socially optimal output than the pre-subsidy output is from the socially optimal output.
• C)Under the condition that the post-subsidy output is farther away from the socially optimal output than the pre-subsidy output is from the socially optimal output.
• D)Under the condition that the subsidy is less than the marginal external benefit (associated with the positive externality).

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life, reflecting wear and tear, obsolescence, or loss of usefulness.

Plant And Equipment

Plant and Equipment refer to the long-term assets used in the operation of a business, excluding buildings or real estate, that contribute to the production process.

Notes Payable

A financial obligation represented by a written promissory note, which specifies the amounts borrowed, interest rate, and maturity date.

Supplies Consumed

The cost of supplies used during a specific period, often impacting the income statement through expense recognition.